The present invention relates to a wireless communication method and apparatus whereby the true owner of, for example, a credit card or mobile telephone, can prevent others from using the same in the event of a loss or theft of the credit card, mobile telephone, and the like. When a non-cash transaction occurs, such as when an attempt is made to use a credit card or place a call with a mobile telephone, the method and apparatus of the present invention allow for the true owner of the credit card and/or mobile telephone to immediately know that the transaction is taking place so that the true owner can take necessary action to prevent the illegal use.
Presently, more and more non-cash transactions take place, such as when customers purchase items in stores, use private mobile telephones and cellular telephones to make local calls, long distance calls, across the border roaming calls, etc., and subsequently, to settle for payment monthly or quarterly using non-cash methods of payment such as credit cards, club cards, telephone cards, etc. Such non-cash transactions, may occur in restaurants, hotels, housing, purchasing airline tickets, train tickets, etc., after which, payment is made upon receipt of a bill from the card company. Sometimes, private codes are utilized, such as when customers utilize telephones or computers to input their private codes in order to made the payments.
When consumers use a non-cash method of payment to pay bills, they need not carry with them a large sum of money (cash). Thus, they do not have a risk of losing a large amount of cash, not to mention the added convenience of non-cash payments and reduction in contact with stolen bank notes.
However, non-cash transactions result in particular problems and risks. Though consumption by using credit cards, or cellular telephones, are based on the development of modern electronic technology, computer technology and modem communication technology, these technologies can also cause problems with respect to the security of the card, phone, etc. Sometimes individuals utilize advanced technology in order to accomplish illegal acts, such as stealing other peoples' credit cards and cellular telephones and making use of the same. In particular, because non-cash transactions are taking place at much greater frequency throughout the world, the risks involved are ever increasing.
Some examples of dangers inherent in non-cash transactions are as follows: When a consumers mobile telephone is lost, or the inside parameters of the mobile telephone are stolen (such as ESN or MIN), the thief can make an illegal reproduction of the mobile telephone and extensively use the telephone with the charges being sent to the true owner. Also, when consumers' credit cards are lost or stolen, the stolen card can be reproduced and the true owner of the credit card or the bank issuing the credit card, or the company accepting the credit card can suffer large losses.
Records show that at present, more than twenty million credit cards are registered as lost every year. In addition, the loss of money due to the use of fake credit cards is a high as several hundred million dollars a year. However, until now, there has not been an effective way to prevent this large amount of fraud involved in non-cash transactions.